Tuesday, May 28

How a mum cleared £11,000 of debt


 

 

It started with a holiday. Five years ago Tori Gabriel and her husband went to Florida.

The plan was one last big trip together before they started a family, so they took out an affordable loan to cover it.

A £7,500 loan turned into a £10,000 loan, then there were the credit card costs on top.

The couple found themselves with £11,000 of debt and an income of just £22,000 after tax.

Our payments for the loan were about £200 a month we didn’t have a lot left over at the end of each month but it was okay, Tori told The Sun

But then my hours at worked were reduced and Jessica was born and it was a real struggle.

Beating their debt

On top of their existing debts and new childcare costs, Tori and Steve were hit with a new expense at the end of 2016.

Their landlord decided to sell their rented home, leaving them looking for a new place to live without any savings to pay for a rental deposit.

Being debt free feels great, Tori said (Image: Facebook) Tori borrowed £2,000 from her parents, paying back £50 a month, to cover the deposit and decided to get serious with her debts.

It was so stressful and ridiculous – we had to borrow the money from my parents to move as we had no savings, Tori said.

The couple attacked their spending, switching Tesco for Lidl, swapping energy providers, and selling unused items on eBay.

They also gave up treats and luxuries, ditching nights out in the pub, trips to the cinema and more – and it all worked.

It feels great we’ve started saving for the first time in our lives by putting £200 away each month, Tori said.

Sacrificing is the best way to do it, you have to work out what you owe and how much you can afford to spend.

Don’t bury your head in the sand about it.